Home insurance refused.

MaceAce

January this year our house was flooded - approximately £82k damage. 10 months on, still not resolved yet as to which contractor's bid has been accepted.

There has been huge delays with feedback from loss adjustors, surveyor and insurance company.

My main questions are this -

Our policy is due for renewal in November and our present insurer/ broker will not allow us to renew or obtain a quote from them. So they have declined to quote. They haven't given a reason - is this normal?

1. My wife was worried they wouldn't cover the cost of repair if they are declining now. Which I am assuming given clearance work started and dehumidifiers installed- the claim would still go ahead.

2. Also the house is unoccupied due to the clearing work that has been done - in fact its an empty shell now. On our present policy it states - they wont insure an unoccupied house. Given our policy expires next month they also said they wont insure our property given the nature of the claim value. where do we stand.

3. I have been informed when the work commences - we wont be able to enter the house unless with supervised visits. Doors locks with be changed etc. So who is responsible for insurance whilst the work is being carried out. Do we insure the house for 3/4 months during the repair period or do we insure after all the work has been carried out.

4. Finally - our council insist of us paying council tax - no option for reduced amount.

Has this happened to any other house holders?

Please advise...

Mildly_Miffed

I think you might be in the wrong forum. You probably want https://forums.moneysavingexpert.com/categories/insurance-life-assurance

I've flagged it for an admin to review and move.

Ectophile

A house that is empty and uninhabitable should be exempt from council tax: https://www.gov.uk/council-tax/second-homes-and-empty-properties

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82162953#Comment_82162953

This is the right answer. That guide covers how to request deletion from the council tax register, and even suggests that a major repair schedule following a flood is a good example of when council tax would not be due.

You will need to submit as much evidence as you can, including all dates, and your council tax exemption should be backdated.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6686129/home-insurance-refused

1. Home insurance is written on a losses occurring during basis so as long as the policy was in good standing at the date that you made the claim if its renewed or not afterwards is totally irrelevant. The only thing that would cause a problem is if the policy was voided as that has the legal effect of the policy having never existed and the only grounds an insurer has to void a policy is fraud

1. Need to buy unoccupied property insurance. Presumably none of the damage is structural and so hopefully you won't have the issue of needing something that covers both construction work and unoccupied property. You could log a complaint with the insurer about non-renewal but unlike subsidence there arent the same industry agreements in place that make them have to either offer a renewal or help you find alternative cover

1. The contractors will cover it for if they make a mistake and take down the wrong wall or such but you would still need to insure it against perils unrelated to the works

1. Yes, many. Big claims happen every day. Property insurers payed out £6.1bn last year on claims and those arent all made up of £500 claims for snatched phones.

LukeB_92

One aspect that has not been picked up yet is the 10 months of delay itself, separate from the renewal question.

The insurer remains responsible for delays by the loss adjusters and surveyors it appoints, so it is worth making a formal complaint in writing specifically about the delay - not just about non-renewal. Set out a dated timeline of what was promised, when, and what has not happened, and ask for a final response and a named contact and date for the contractor decision.

If you get a final response you are not happy with, or 8 weeks pass without one, a complaint about the handling and delay can then be taken to the Financial Ombudsman. Keeping that paper trail also helps if extra costs have been caused by the delay, as those need to be evidenced rather than just asserted.

And a practical warning on the unoccupied cover mentioned above: those policies usually come with conditions - regular recorded inspections, water systems drained down or heating kept on, and the property kept secured. Check and comply with them from day one, as a breach can be used to decline a further claim while the house stands empty.

Annemos

https://forums.moneysavingexpert.com/discussion/6686129/home-insurance-refused

Re the issue of the ongoing Insurance. My feeling is you need to approach the Insurer who is handling the claim directly. I don't know if your Broker can do this (bypassing the standard quote system mechanisms.) If they can't, then you need to do it yourself straight away.

I am attaching the link for the "Good Practise Guidance from the ABI. " I hope your Insurance Company is a Member of the ABI.

Ask that they refer this problem to their Underwriting Team, urgently.

Point out this Guidance to them and tell them about the problem you are now having with the Broker. Say this guidance implies that they must continue to insure you until all the repairs are complete.

========================

Good practice guidance: Continuation of buildings insurance cover while a property is undergoing repairs

https://web-uat.abi.org.uk/products-and-issues/topics-and-issues/flooding/recovering-from-a-flood/guidance-on-continuation-of-buildings-insurance-cover-while-a-property-is-undergoing-repairs/

=========

Here is the corrected link: to check if your Insurance Company is indeed a Member of the ABI. (They have recently changed how it looks.)

https://www.abi.org.uk/membership/membership-directory

Good luck with everything.

MaceAce

https://forums.moneysavingexpert.com/discussion/comment/82162993#Comment_82162993

Thank you for your comments.

We have approached the council with lots of information from insurers, dehumidifier company report, photos and detailed description of the state of the house which is just a shell. No kitchen, bathroom, toilets, no light or electricity. The Council refused our request to be exempt from council tax. We then have approached the local MP - nothing can be done. Leicester City Council will not grant an exemption. We have written to the Ombusman now.

MaceAce

Thank you.

MaceAce

Thank you.